It takes $30,000 to pay cash for a $20,000 car....

Democrats in Washington, D.C., have told the average American that we don't need to have our taxes
lowered. I am puzzled by this, so I have a riddle for them: How much does it cost to buy a $20,000
automobile?

I realize that this is an unfair question put to them since they are chauffeured to and from work every
day and probably haven't set their hand on a gas pump in decades. The quick answer would be
$20,000, but they would be wrong. They would be wrong because they don't have any idea what the
average American pays in taxes. If they did they would not be telling me, my wife and my son that the
amount they tax us is just right and not a burden. So how much does it cost to buy a $20,000
automobile? Let's do the math!

You and I know that you can't just walk into a car dealer and put down $20,000 for a $20,000 car and
drive away, but the Democrats in Washington don't know that. We know that the $20,000 must be
earned first and must be after-tax dollars. So we need to account for the average tax rate for Americans
and the average state tax rate also. We also need to consider the sales tax and licensing fees and other
income taxes. For simplification we won't consider gasoline fees and dealer fees.

If the sales price of automobile is $20,000 and sales tax is 7.75 percent then we will spend $1,550 in
sales tax. The state licensing fee is 2.5 percent of the sales price, or $5OO, and we will have to pay this
tax also. This means that full price of our automobile is $22,050.

In other words we need $22,O50 just to drive the car off the lot, but we first must earn enough to
provide $22,050 in spending income, and there is host of income taxes applied to the average
American.

We first must earn enough to pay for the income taxes that are taken out of our paychecks before we
get to spend the $22,050 we need to buy our automobile. Social Security withholding is 6.1 percent,
Medicare is 14 percent and Disability Unemployment withholding is .5 percent. Then, of course, there
are state and federal income taxes. For simplification, we will assume that the federal tax bracket after
adjustments, is 17.75 percent and the state income tax bracket paid is 5.75 percent. Therefore, the
income taxation totals 26.5 percent.

So, roughly, we must earn 26.5 percent more than $22,050 to pay for all the income taxes assessed on
our paychecks before we receive the $22,050 we need to spend on our automobile -- or an additional
$7,950. In other words, we need to earn $30,000 in gross income.

To summarize, to purchase our automobile we will spend $4,750 in federal income taxes, $1,344 in
state income taxes, $1,432 in Social Security taxes, $313 in Medicare taxes, $111 in Disability and
Unemployment, $1,550 in sales tax and $500 in state licensing fees. We will pay a total of $10,000 in
taxes alone to purchase a $20,000 automobile.

It is astounding when one-third of the purchase of an automobile is needed just for taxes. Its even
more astonishing to realize that we have Democrats in Washington, D.C., who have the audacity to tell
us that a tax cut is not needed. Democrats in D.C. are clearly out of touch with the average American.
They obviously have no concept of how we average Americans live our lives, or of the struggle we face
with the tax burden they strive to continue to impose upon us. Their lifestyle in our nation's capital
must be very easy for them, but for the average American in the heartland, taxation is the bane of our
existence.

If the Democrats in Washington knew how the average American lives, I believe that they would be in
favor of the tax-reduction plan that has been proved by Congress. But since they have no concept of
how we average Americans live our lives, they are emboldened to say that we don't need a tax cut.

And they call it a representative government.

Mr. Yarbrough is correct in his mathematics but to heap all the blame on the shoulders of the crooks,
cowards and criminals who wear the mantle of Democrat isn't being truthful. Since the Republicans
took control of Congress in January of 1995, the government has grown in size, taxes are still out of
control and they have withered under the watchful eye of Janet Waco Reno and Mr. Clinton. And, if
you've read the investigative reports by Capitol Hill Blue, you will see that the Republicans have been
getting away with criminal activities that would have put you and I in jail a long time ago.

There is only one solution for the problem with the IRS and that is a total, lawful tax revolt by
following the law as it is written and don't volunteer. What's going on now is NOT what the Founding
Fathers wanted for America. It's a national disgrace.

The real question remains: Are the people ready to finally just say No? When will enough be enough?
Only a full tax revolt will force both the Democrats and Republicans in Congress to confront the
world's powerful bankers who are charging ahead with the destruction of America and bringing our
Republic to her knees as part of a one world financial and "moral" order.

Answers

And that's only part of the story. Some of the 20K that does go to the
car mfr will be reported as profit and so taxed again. Some of the
after-tax profit will be paid as dividends to stockholders and will be
taxed again. Some of the money you paid for the car will be sent
directly to the government for SS. Then there are property taxes and
local and state income taxes. I am not a tax lawyer; I'm sure there is
much more.

BUT, what is the tax revolt that you want? Do you simply want lower
taxes or do you deny that the government has any legitimate expenses
that must be funded by tax revenues? (National defense for example?)
Do you want a "more fair" tax plan? Now there's a can of worms. Don't
tax you; don't tax me; tax the fellow behind the tree.

Seems to me that any tax reform must be incremental. Please, the world
has been bedeviled by too many revolutions. How about creeping
capitalism. How about Fabian capitalism? How about term limits?